2017 (9) TMI 1203 - AT - Customs

Mis-declaration of goods - It was mentioned Calcium Carbonate in the papers relating to the consignment but inside the consignment, there were Fire Crackers and Telescopic Channels - Held that - it appears that the appellant has not dealt directly with the importer, M/s. Sanco Industries Pvt. Ltd. but through M/s. Sky Park India, a logistic service provider (middle man), which was not desirable but not prohibited - matter remanded to the Adjudicating Authority to decide the issue of levy of any maximum punishment other than revocation of licence but by providing reasonable opportunity of hearing to the appellant - appeal allowed by way of remand.

Summary

Issues: Mis-declaration of goods leading to confiscation, revocation of license, forfeiture of security amount.

The case involved an appeal against an Order-in-Original passed by the Commissioner of Customs (General), New Delhi, regarding mis-declaration of goods imported from China. The goods were declared as "Calcium Carbonate" but were actually "Fire Crackers and Telescopic Channels." The appellant, a Customs House Agent (CHA), had cleared the goods through a logistic service provider, M/s. Sky Park India. Subsequently, the goods were confiscated, and the appellant's license was revoked, with a security amount of ?75,000 forfeited. The appellant contended that all documents were genuine, and they had not directly contacted the importer. The appellant cited previous case laws to support the appeal for license revocation. The Department justified the impugned order based on the mis-declaration of goods.

Upon review, it was observed that the CHA had not violated any regulations and was not liable for any action. However, a Disagreement Note overruled this observation, stating that since the appellant had not dealt directly with the importer but through a middle man, the inquiry report's findings were dismissed. The Tribunal noted that the appellant's indirect dealing with the importer through a logistic service provider was not ideal but not prohibited. Citing a Delhi High Court case, it was concluded that there was no malafide intention on the part of the appellant, and the trust between the CHA and Customs Authorities was not irretrievably lost. Consequently, the Tribunal modified the impugned order, remanding the matter to the Adjudicating Authority for reconsideration of the punishment, providing the appellant with a reasonable opportunity for a hearing. The appeal was allowed by way of remand, and a miscellaneous application was disposed of accordingly.